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January 17, 2006

Merger in the Word-of-mouth industry – BuzzMetrics & Intelliseek

Surprising news today, BuzzMetrics buys Intelliseek to form the company Nielsen BuzzMetrics. Both BuzzMetrics and intelliseek are leaders in the word-of-mouth marketing or consumer generated media measurement industry.

Many larger companies are using blog metrics services for the purpose of market research, but rather than representative research, such companies use sophisticated mathematics to compile observational research for their customers.

Combining technology and human analysis expertise blog metrics companies build databases of the web, which are then analyzed using natural language techniques that allow them to report on consumers opinions across thousands of sites, from blogs, to forums, to newsgroups and beyond.

Blog marketing in my view is a combination of blogging, public relations and search engine optimization. Conducting successful blogger relations campaigns requires a thorough measurement of your community, while many of these blog metrics services maybe beyond the budgets of most companies for blog marketing. From my review of several of these companies it’s my understanding that most companies are using their data for PR and marketing measurement and market research.

Read the press release, “VNU Brings Together BuzzMetrics, Intelliseek to Create Nielsen BuzzMetrics Service,? the new company’s “clients include: Canon, Comcast, Ford, General Motors, HBO, Kraft, Microsoft, Nokia, P&G, Showtime, Sony, Target and Toyota. Others include 14 of the top 15 pharmaceutical companies and over eight television networks.?

Steve Rubel poses an important question here, “Nielsen, like other research companies that track and measure the media, was faced with a vexing issue. Namely: How do you evolve when the very media ecosystem on which you built your business is eroding? The answer is to acquire smart thinkers who have figured out ways to analyze, measure and live in a world where the Long Tail dominates.?

And Steve goes on to make the point in the fast growing world of consumer generated media, its easier to buy those boffins who have spent years researching the industry.

Neville Hobson reviews the future for the owners of the new company, VNU, “VNU itself is in the final stages of being acquired by a consortium including some of the world's biggest private equity groups who made a non-binding offer for VNU yesterday, valuing the company at up to €7.3 billion ($8.8 billion).?


Thanks Jeremy!

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Posted by johncass at January 17, 2006 11:49 PM

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